Lottery Tax Calculator: How Much Will You Keep?
Enter any jackpot amount and your state — see exactly how much you take home after federal and state taxes, for both lump sum and annuity.
- October 9, 2026
- 8 min read
- #Tax Guide
- #Powerball
- #Mega Millions
Winning a lottery jackpot sounds simple — until you realize the advertised number and your bank deposit can differ by hundreds of millions. In the United States alone, between the lump-sum discount, 37% federal tax, and your state's cut, you might keep less than a third of the headline prize. But if you won the same amount in Canada, the UK, or Germany, you would keep every single euro or pound — lottery winnings are completely tax-free there. This guide covers every country and US state in our calculator, with the exact rules, rates, and real-money examples.
Lottery Tax Calculator
Enter your jackpot amount, choose your country and state, and see your exact take-home for both lump sum and annuity — with a full breakdown of every tax deducted.
Calculate My Take-Home →Countries Where Lottery Winnings Are Tax-Free
In most countries, lottery prizes are classified as windfall income — not earned income — and are therefore exempt from income tax entirely. Winners in the following countries receive the full announced prize:
Ontario lottery prizes — including OLG Lotto 6/49, Lotto Max, and Daily Grand — are completely tax-free. The Canada Revenue Agency classifies all lottery winnings as windfall income, not taxable income. Investment returns on the winnings are taxable as normal income.
Atlantic Lottery Corporation prizes for New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland & Labrador are fully tax-free under the same CRA windfall income rule that applies across Canada. Winners keep 100% of the prize.
BCLC (British Columbia Lottery Corporation) prizes are completely exempt from federal and provincial income tax. BC Lotto 6/49, Extra, and Scratch & Win prizes are paid in full. The windfall income exemption applies across all Canadian provinces.
Loto-Québec prizes — including Lotto 6/49, Lotto Max, and Québec 49 — are exempt from both federal and provincial income tax. The CRA windfall classification applies equally to Quebec residents. Winnings are paid in full.
Quebec lottery prizes through Loto-Québec are completely tax-free. All provincial and national lottery prizes are exempt from Canadian income tax as windfall income. Winners receive the full announced prize amount.
Western Canada Lottery Corporation (WCLC) prizes covering Manitoba, Saskatchewan, and Alberta are fully tax-free. Like all Canadian provinces, lottery winnings are classified as windfall income and are not subject to federal or provincial income tax.
Austrian Lotto and EuroMillions prizes are paid out in full to winners. There is no income tax on lottery winnings for private individuals. Operators pay taxes on ticket revenue, not winnings.
Belgian lottery prizes from the National Lottery (Loterie Nationale) are completely tax-free. This includes EuroMillions prizes. Winnings are not counted as income for tax purposes.
Lottery prizes in Denmark are exempt from income tax. Det Danske Klasselotteri and Danske Spil prizes are paid in full. Denmark taxes gambling operators, not individual winners.
Estonia does not tax lottery winnings for private individuals. Prizes from Eesti Loto and other licensed lotteries are exempt from income tax under the Income Tax Act (Tulumaksuseadus). The operator handles all gambling taxes.
Veikkaus (Finland's state lottery monopoly) pays all prizes tax-free. Finnish law explicitly exempts lottery winnings from income tax under the Income Tax Act (§ 85).
Prizes from FDJ (Française des Jeux) — including EuroMillions — are not subject to income tax for French residents. The operator is taxed, not the winner. Prélèvements sociaux (social levies) do not apply to lottery winnings.
Lottery winnings are exempt from income tax (Einkommensteuer) for private individuals. Operators pay a 5% Lotteriesteuer on ticket sales, but this cost is never passed to the winner. LOTTO 6aus49 and EuroJackpot prizes are paid in full.
Hungary exempts lottery winnings from personal income tax. Prizes from Szerencsejáték Zrt (the state lottery operator) are paid in full to winners. Gambling tax is levied on operators, not on individual prize recipients.
Icelandic lottery prizes are completely tax-free for private winners. Prizes are paid in full. Iceland taxes gambling operators at the licensing stage rather than taxing winners.
Irish National Lottery prizes are completely exempt from income tax. The operator is separately licensed and taxed; winners receive the full amount. CAB (Criminal Assets Bureau) may investigate unexplained large wins.
Lithuania exempts lottery prizes from personal income tax. Prizes from Olifėja and other licensed Lithuanian lotteries are paid out in full. No withholding applies to individual lottery winners.
Luxembourg does not apply income tax to lottery winnings. Prizes from the Loterie Nationale and EuroMillions are completely tax-free for residents. The operator is subject to licensing fees rather than winner taxation.
Norsk Tipping lottery prizes are not considered taxable income under Norwegian law. Prizes are paid in full. Investment returns on the winnings are subject to capital gains tax as normal.
Slovakia exempts lottery prizes from income tax. Winnings from TIPOS (the national lottery operator) are paid in full. Slovakia taxes gambling operators through licensing fees rather than taxing individual winners.
Svenska Spel prizes are not taxable income. Sweden removed gambling taxes on winners in 2019. All licensed lottery and casino winnings within Sweden are tax-free for residents.
HMRC does not tax National Lottery or any licensed UK lottery prizes. You receive the full announced amount. Interest or investment gains from the winnings are subject to normal income or capital gains tax.
Countries & States That Tax Lottery Winnings
These countries and US states tax lottery prizes. US states also owe 37% federal tax on large jackpots in addition to their state rate.
Alabama taxes lottery prizes at a 5% state income tax rate in addition to the 37% federal rate on large jackpots. The lottery withholds 24% federal upfront; the remaining 13% is owed at filing.
Alaska has no state income tax, so lottery winners only pay federal tax — 37% at the top bracket for large jackpots. Alaska does not operate its own state lottery, but residents may win multi-state games.
Arizona taxes lottery prizes at a flat 2.5% state income tax rate (2026). The Arizona Lottery withholds 5% for residents and 6% for non-residents at the time of payout. Federal withholding of 24% applies on top.
Arkansas taxes lottery prizes at 3.7% state income tax. The Arkansas Scholarship Lottery withholds the state amount before paying winners. Federal 24% withholding applies separately.
California is unique: under Government Code § 8880.68, California Lottery winnings are specifically exempt from state income tax, even though California otherwise has one of the highest income tax rates (13.3% top rate). Only federal tax applies. Non-California lottery wins (online, out-of-state) are taxable at the full California rate.
Colorado taxes lottery winnings at a flat 4.4% state rate. The Colorado Lottery withholds 4% for residents upfront. Federal 24% withholding applies separately.
Connecticut taxes lottery prizes at 6.99% state income tax. The CT Lottery withholds 6.99% for residents at payout. Federal 24% withholding also applies.
Delaware taxes lottery winnings at up to 6.6% (top marginal rate). The Delaware Lottery withholds state tax before paying. Federal 24% withholding applies on prizes over $5,000.
Florida has no state income tax, making it one of the most favorable US states for lottery winners. Only the 37% federal rate applies on large jackpots (24% withheld upfront). The Florida Lottery pays prizes net of federal withholding only.
Georgia taxes lottery winnings at 4.99% state income tax. The Georgia Lottery withholds 5.75% for residents upfront (slightly above the rate; the difference is reconciled at filing). Federal 24% withholding also applies.
Hawaii has the highest state lottery tax rate in the US at 11%. However, Hawaii does not operate a state lottery — residents who win multi-state games or out-of-state games owe this rate. The combined federal + state burden can reach 48% for large prizes.
Idaho taxes lottery prizes at 5.3% flat state rate. The Idaho Lottery withholds 5.8% upfront for residents; the small overage is reconciled at filing. Federal 24% withholding applies separately.
Illinois taxes lottery prizes at a flat 4.95% state rate. The Illinois Lottery withholds 4.95% before paying winners. Federal 24% withholding applies on prizes over $5,000.
Indiana taxes lottery winnings at 3.05% state rate plus a local county tax that varies by county (typically 0.5%–2.9%). The Hoosier Lottery withholds 3.4% for residents upfront. Federal 24% withholding applies separately.
Iowa taxes lottery prizes at 3.8% state income tax. The Iowa Lottery withholds 5% upfront for residents (overage reconciled at filing). Federal 24% withholding also applies.
Kansas taxes lottery winnings at up to 5.58% state income tax. The Kansas Lottery withholds 5% upfront for residents. Federal 24% withholding applies on prizes over $5,000.
Kentucky taxes lottery prizes at a flat 3.5% state rate. The Kentucky Lottery withholds 5% upfront (overage reconciled at filing). Federal 24% withholding applies separately.
Louisiana taxes lottery winnings at up to 3% state income tax. The Louisiana Lottery withholds 5% upfront for residents (overage reconciled at filing). Federal 24% withholding also applies.
Maine taxes large lottery prizes at 9.15% including a 3% surcharge on income above $1M. The Maine State Lottery withholds 7.15% upfront; the surcharge is paid at filing. Federal 24% withholding applies separately.
Maryland taxes lottery prizes at 6.5% state rate plus a local income tax of up to 3.2% (total up to 9.7% in some jurisdictions). The Maryland Lottery withholds 8.95% upfront for residents. Federal 24% withholding also applies.
Massachusetts taxes lottery prizes at 5% plus a 4% 'Fair Share' millionaire surtax on income above $1M. The Massachusetts Lottery withholds 5% upfront; the surtax is owed at filing. Federal 24% withholding applies separately.
Michigan taxes lottery winnings at 4.25% state plus an additional city income tax for Detroit residents (2.4%). The Michigan Lottery withholds 4.25% for residents upfront. Federal 24% withholding also applies.
Minnesota has one of the highest state lottery tax rates in the US at 9.85% on income over $220,650 for single filers. The Minnesota Lottery withholds 7.25% upfront; the remaining balance is owed at filing. Federal 24% withholding applies separately.
Mississippi taxes lottery prizes at a flat 4% state rate. The Mississippi Lottery Corporation withholds 3% upfront for residents (difference owed at filing). Federal 24% withholding also applies.
Missouri taxes lottery winnings at 4.7% state income tax. The Missouri Lottery withholds 4% upfront for residents (difference reconciled at filing). Federal 24% withholding applies on prizes over $5,000.
Montana taxes lottery prizes at up to 5.65% (top marginal rate). The Montana Lottery withholds state tax before paying. Federal 24% withholding applies separately.
Nebraska taxes lottery winnings at up to 4.55% (2026 top rate after recent reductions). The Nebraska Lottery withholds 5% upfront for residents. Federal 24% withholding also applies.
Nevada has no state income tax. However, Nevada prohibits state lottery operations — residents who win Powerball or Mega Millions jackpots purchased elsewhere still owe only federal tax on those winnings. No state withholding applies.
New Hampshire has no broad-based state income tax (as of 2025, the interest and dividends tax was fully phased out). Lottery winners pay only federal income tax. The New Hampshire Lottery withholds 24% federal upfront on prizes over $5,000.
New Jersey taxes lottery prizes above $10,000 at 10.75% — one of the highest state rates. The NJ Lottery withholds 8% for residents upfront; large winners owe the remaining 2.75% at filing. Federal 24% withholding applies separately.
New Mexico taxes lottery prizes at up to 5.9% state income tax. The New Mexico Lottery withholds 6% upfront for residents (small overage reconciled at filing). Federal 24% withholding also applies.
New York has the highest combined lottery tax burden in the US. State tax is 10.9% plus up to 3.876% New York City tax for NYC residents. The NY Lottery withholds 8.82% state + 3.876% city upfront; large winners owe the difference at filing. Federal 24% withholding also applies.
North Carolina taxes lottery winnings at a flat 3.99% (2026 rate, phasing down). The NC Education Lottery withholds 5.25% upfront for residents (overage reconciled at filing). Federal 24% withholding applies separately.
North Dakota taxes lottery prizes at a flat 2.5% state rate. The North Dakota Lottery withholds 2.9% upfront (small overage reconciled at filing). Federal 24% withholding applies on prizes over $5,000.
Ohio taxes lottery winnings at 2.75% state rate (2026) plus a municipal income tax of up to 2.5% depending on where the winner lives. The Ohio Lottery withholds 4% upfront; the difference and any municipal tax are settled at filing. Federal 24% withholding also applies.
Oklahoma taxes lottery prizes at up to 4.5% state income tax. The Oklahoma Lottery withholds 4% upfront for residents. Federal 24% withholding applies on prizes over $5,000.
Oregon taxes lottery winnings at up to 9.9% (top marginal rate). The Oregon Lottery withholds 8% upfront for residents; large winners owe the balance at filing. Federal 24% withholding applies separately.
Pennsylvania taxes lottery prizes at a flat 3.07% state rate. The Pennsylvania Lottery withholds 3.07% upfront for residents. Federal 24% withholding applies on prizes over $5,000.
Rhode Island taxes lottery prizes at up to 5.99% state income tax (top marginal rate). The RI Lottery withholds state tax before paying. Federal 24% withholding applies separately.
South Carolina taxes lottery prizes at up to 6.4% marginal (5.21% effective for most jackpot sizes in 2026). The SC Education Lottery withholds 7% upfront for residents (overage reconciled at filing). Federal 24% withholding also applies.
South Dakota has no state income tax, so lottery winners pay only federal tax — 37% at the top bracket for large jackpots. The South Dakota Lottery withholds only the federal 24% upfront.
Tennessee eliminated its Hall income tax on investment income in 2021 and has no state income tax on lottery winnings. Only federal tax applies — 37% at the top bracket. The Tennessee Education Lottery withholds only federal 24% upfront.
Texas has no state income tax, making it a popular destination for lottery winners. Only the 37% federal rate applies on large jackpots (24% withheld upfront). The Texas Lottery pays prizes with only federal withholding deducted.
Utah taxes all income, including lottery winnings, at a flat 4.65% state rate. Utah does not operate a state lottery, but residents who win out-of-state games owe state tax. Federal 24% withholding applies on prizes over $5,000.
Vermont taxes lottery prizes at up to 8.75% (top marginal rate). The Vermont Lottery withholds 6% upfront; large winners owe the remaining balance at filing. Federal 24% withholding applies separately.
Virginia taxes lottery prizes at a flat 5.75% (top rate, 2026). The Virginia Lottery withholds 4% upfront for residents; the balance is owed at filing. Federal 24% withholding applies on prizes over $5,000.
Washington State has no state income tax on lottery winnings. Only federal tax applies. The Washington Lottery withholds only federal 24% upfront on large prizes.
DC residents pay a 10.75% district income tax on lottery winnings — one of the highest rates in the US. The DC Lottery withholds 8.5% upfront; large winners owe the remaining 2.25% at filing. Federal 24% withholding applies separately.
West Virginia taxes lottery prizes at up to 4.58% (top marginal rate under the 2026 reduced schedule). The WV Lottery withholds 6.5% upfront for residents (overage reconciled at filing). Federal 24% withholding applies separately.
Wisconsin taxes lottery prizes at up to 7.65% (top marginal rate). The Wisconsin Lottery withholds 7.65% upfront for residents. Federal 24% withholding applies separately.
Wyoming has no state income tax, so lottery winners pay only federal tax. Only the 37% federal rate applies on large jackpots (24% withheld upfront). Wyoming does not operate its own state lottery but residents can purchase Powerball and Mega Millions tickets.
Croatia taxes lottery prizes above €99.54 on a tiered scale: 10% up to €1,327.23, 15% up to €3,981.68, 20% up to €66,361.40, and 30% above that. The operator withholds the tax before payout.
The Czech Republic withholds 15% on the part of each lottery prize above CZK 50,000 (approximately €2,000). The exemption applies per prize since 2024. Operator withholds before payout.
Greece taxes lottery prizes above €100 on a tiered scale: 2.5% up to €200, 5% up to €500, 10% up to €2,500, and 20% above €2,500. OPAP (the state gambling monopoly) deducts the tax before paying winners.
Italy withholds 20% on all lottery prizes above €500 (ritenuta a titolo d'imposta). This is a final withholding tax — no further income tax applies. The operator deducts it before cutting the cheque. Superenalotto and EuroJackpot prizes are both subject to this rule.
Latvia taxes lottery prizes above €3,000 at 25.5%, and prizes above €105,300 at 33% (2025 rates). The operator withholds before payout.
The Netherlands charges kansspelbelasting (gambling tax) at 37.8% on the whole prize once it exceeds €449 (2026 rate, up from 30.1% in 2023). The lottery operator deducts the tax before paying winners. This is one of the highest lottery tax rates in Europe.
Poland applies a flat 10% lottery tax (podatek od wygranych) on prizes above approximately PLN 2,280. The operator withholds this before paying out, so winners receive 90% of the taxable portion.
Prizes above €5,000 are subject to a 20% Imposto do Selo (stamp duty). The lottery operator deducts this before payout, so the tax is effectively a final withholding. Santa Casa da Misericórdia de Lisboa administers the main national lottery (Euromilhões, Totoloto).
Slovenia withholds 15% on the whole prize once it reaches €300. Prizes below €300 are completely tax-free. The operator deducts before payout.
The first €40,000 of any single prize is completely tax-free. Amounts above €40,000 are taxed at 20% (IRPF — Impuesto sobre la Renta de las Personas Físicas). Organismo Nacional de Loterías (ONLAE) withholds the tax before paying out. The exemption applies per prize event, not per year.
Switzerland withholds 35% (Verrechnungssteuer — federal withholding tax) on prizes above CHF 1,000,000. Swiss residents can reclaim this via their annual tax return, making the effective rate 0%. Foreign winners cannot reclaim it.
US Only: Lump Sum vs Annuity — The Tax Impact
The US is unique: the advertised jackpot is the annuity value — paid over 29–30 years in increasing annual payments. You can also take the lump sum (cash value), which is roughly 60% of the announced jackpot. Each option has very different tax consequences:
- Receive ~60% of advertised jackpot upfront
- All federal and state taxes hit in the same tax year
- You control the money immediately and can invest it
- 24% withheld at the lottery office; the remaining ~13% owed at filing
- Receive 100% of advertised jackpot over 29–30 years
- Each annual payment is taxed as ordinary income that year
- Payments increase ~5% per year (early payments are smaller)
- Tax burden spread over decades; may push early payments into a lower bracket
All 50 US States: Lottery Tax Rate Comparison
✅ No State Tax (federal only)
⚠️ Highest State Rates
Use the calculator for the exact withholding amount for any state.
How to Minimize Lottery Taxes — Legally
If you live near a state border, buying your ticket in California, Florida, or Texas means zero state tax — as long as you claim it in that state.
Annual payments spread across decades may push early-year payments into lower tax brackets, saving meaningful amounts on a very large jackpot.
A blind trust lets you remain anonymous in most states and can provide estate planning benefits. Set it up before you walk into the lottery office.
Donating to charity in the same tax year as your winnings can offset taxable income. A donor-advised fund lets you give the tax deduction now and distribute grants later.
Lior Tencher is the founder of Lottorios, a lottery statistics and tools platform covering 30+ world lotteries. He built the Lottery Tax Calculator to help players understand exactly what they keep after taxes across every US state, Canada, and Europe. He researches lottery tax rules directly from official government and operator sources and updates the data when rates change.
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